Abercrombie & Fitch Co. saw its shares tumble after holiday sales weren’t robust enough for the company to lift its sales guidance.
Abercrombie & Fitch is known for its casual wear – Photographer: Stephanie Keith/Bloomberg
The New Albany, Ohio-based company now expects fourth-quarter sales growth of around 5%, compared with a prior range of 4% to 6%. Full-year sales growth is expected to be at least 6%, compared with a prior range of 6% to 7%, the company said in a statement.
The move comes after the trendy retailer raised the low end of its annual forecast in November, boosted by strong back-to-school demand. Still, consumers were more cautious heading into the holiday season with discerning shoppers pulling back on spending. The latest update sets the stage for Abercrombie to be more prudent in 2026 after years of momentum.
Shares of Abercrombie sank 17% in Monday premarket trading in New York. The shares were down 16% last year, compared with a roughly 6% gain for the S&P Midcap 400 index.
Abercrombie made the announcement before the ICR Conference taking place this week in Orlando. The company is expected to report full fourth-quarter results around March 5.
